Liu Buchen: Best Buy “china Strategy” Is Still Exploring – Best Buy, Five Star, The

2006 5 12, the U.S. home appliance chain giant Best Buy to spend 180 million U.S. dollars holding Jiangsu Five Star Appliance. So far, foreign investment formally opened channels of the domestic appliance market, the big screen, Best Buy has also started to become household appliances industry hot topic. The last week of 2006, the Chinese market three years after dormant, Best Buy in Shanghai Xujiahui out its first store in China to take “with suppliers to take payment before getting goods”, “Promoters by Best Buy Inc. employment “,” products on display by type rather than brand “new way, while the domestic appliance industry is not shy about the price of war. In the press meeting at the new store opened, Best Buy executives made it clear the Group, Best Buy do the Chinese market first, and publish “not copying the American model, in no hurry to Happy Valley enclosure, is not shy about the price war,” and other Chinese strategy . Surface calm but ambitious Best Buy for the future addition of the Chinese home appliance market, a layer of variable channels.

Daily: Best Buy Shanghai store has been included in Best Buy’s global sourcing system, but Five Star has also begun to establish itself with Best Buy’s global sourcing platform. Lv Weimin said, with the global procurement system, Best Buy Shanghai store in the slotting allowance is not income under the premise of not only guarantee the company’s gross profit margin, and competitive prices. Global procurement system in the end you think that has much power, Gome, Suning no advantage at all in this respect it?

Liu Buchen : Best Buy to implement global sourcing, Best Buy for the whole group, there is no doubt that advantage is obvious, it can not be denied. However, it should be noted that Best Buy is currently only one store in China, even if the next 1 year to 1 year and a half developed to the 2-3 stores, still does not embody the number of scale advantages. So, for now, Best Buy’s global sourcing in China, little substantive meaning.

In fact, the global home appliances are mostly MadeinChina, Best Buy’s global sourcing is in fact more procurement, for the most common home appliance products, Best Buy will not be purchasing advantages than Gome, Suning more .

Daily: Best Buy has admitted that the Shanghai store’s gross profit margin than its stores in the North American market. But Best Buy said he was very optimistic about the China market, at Best Buy the list of professional assessment organization, occupied the first position of the Chinese market. Best Buy executives made it clear that in Europe, India and Japan, the Chinese are more development space, Best Buy, “do the Chinese market first, although this will take some time.” How do you think the current Chinese home appliances chain industry? Foreign store channel business strengths and weaknesses are what?

Liu Buchen : Best Buy optimistic about China’s home appliance chain store market in reason, because China is the world’s most growth in the market, not only home appliance chain, many industries have a great space for future development.

From the share point of view, the current turnover of China’s home appliance chains account for about 35% of all appliance sales, and more than 80% of the developed countries there is still a large gap, therefore, the future development of space is still available is great.

Now look to foreign investors, led by Best Buy, home appliance chain, and in GOME, Suning Appliance Chain headed home than are significant differences between the strength is expected within the coming three years is impossible to form a substantial threat to domestic appliances and challenges . This is the disadvantage of Best Buy.

However, it should be noted that Best Buy from the world’s most developed countries, the United States, successful, mature operational experience, a number of relatively standard operating method, the “Chinese home appliance chain must be standardized operation” increasing demands for Today, Best Buy’s practice will be a threat to domestic home appliance chain, forcing the Chinese home appliance chain must break the rule, so transition to standardized operation. BOLA TANGKAS